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Title:Does higher cost inefficiency imply higher profit inefficiency? Evidence on inefficiency and ownership of German hospitals PDF Logo
Authors:Herr, Annika
Schmitz, Hendrik
Augurzky, Boris
Issue Date:2009
Series/Report no.:Ruhr economic papers 132
Abstract:This paper investigates cost and profit efficiency of German hospitals. More specifically, it deals with the question how hospital efficiency varies with ownership, patient structure,and other exogenous factors, which are neither inputs nor outputs of the production process. We conduct a Stochastic Frontier Analysis (SFA) on a multifaceted administrative German dataset combined with the balance sheets of 374 hospitals for the years 2002 to 2005.The results indicate that private (for-profit) and (private) non-profit hospitals are on average less cost efficient but more profit efficient than publicly owned hospitals.
Subjects:Hospital efficiency
ownership
stochastic frontier analysis
profit function
JEL:C13
I11
L33
ISBN:978-3-86788-146-3
Document Type:Working Paper
Appears in Collections:Publikationen von Forscherinnen und Forschern des RWI
Ruhr Economic Papers, RWI

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